The Nigerian crude oil has dropped significantly as two of the major crude oil companies in Nigeria declare a state of emergency.
The state of emergency allows companies to cancel or delay deliveries due to unforeseen circumstances.
Shell petroleum in a statement said it will declare a state of emergence on Bonny Light effective 12 noon April 25th.
The company said the declaration followed the shutdown of the Nembe Creek Truck Line on April 21, 2019. Last week, Aiteo declared a state of emergency on the NCTL following a fire outbreak. Saying it was constrained to shut in injection and other operations into the NCTL.
Amenam, which is operated by oil major, Total, is also under a state of emergency. Both grades of crude are light and sweet, typically suitable for petrol production.
A port source told Reuters that oil-well shutdowns had reduced Amenam’s daily production and led to force the state of emergency. Exports of Amenam are typically around 100,000 bpd.
The two kidnappings of shell oil workers an escalation that helped prompt state police to step up security operations.